What are Limited Benefit Plans?

There’s a lot to become familiar with as you look for New York health insurance, and many different options to compare. We’re glad you are here, where you can simplify the process and compare policy offerings in just a few clicks of the keyboard.

We do want to help you understand what you might encounter as you look at different New York health insurance plans from https://newyork-insurance.website/new-york-health-insurance/, and one of these is called a limited benefit plan. It sounds like it is self-explanatory—and it is—but here is how a limited benefit plan is defined by the health insurance industry.

Not a substitute for traditional insurance

A limited benefit policy gives you limited coverage, but that limitation can be for a specific disease, a health care center or a condition. This kind of policy covers only a narrow range of health conditions and should not be considered a replacement for traditional health insurance.

Basic medical-surgical expense coverage protects you from costs associated with a non-elective surgery. This will include a fixed number of days in the hospital—usually not less than three weeks.

Hospital confinement indemnity coverage reimburses you a fixed amount for each day you are in the hospital. It is like a per diem in that it does not pay a benefit based on your actual expenses but on the number of days you are in-hospital.

Basic hospital expense coverage will give you insurance coverage for not less than 31 days of continuous care in the hospital and will also cover some specific hospital outpatient services. If you are expecting a long hospital stay, this coverage will help.

Accident only coverage kicks in only if you have an accident with coverage for death dismemberment, disability or hospital and medical care caused by an accident. You can even buy coverage that is only for a specific kind of accident.

Single disease plans not for everyone

You can also buy a policy that covers diagnosis and treatment of a named single disease, such as cancer. If you are tempted to buy this, remember that you may never get the disease, even if it has a hereditary tendency.

In that same way, you can buy separate coverage for vision or dental care.

While it is good to know what options are available to you, this is a very specialized kind of New York health insurance. Ask yourself how likely is it that you will use this kind of limited benefit?